NS&I boosts rates on Premium Bonds with more £100k and £50k prizes up for grabs

National Savings & Investments is increasing the number of Premium Bond prizes it pays out every month, boosting its 22million savers’ chances of winning.

Millions of pounds more in Premium Bonds prizes will be up for grabs from next month as NS&I increases the prize fund rate from 1.4 per cent to 2.2 per cent. 

This beats the top easy-access savings rate in the independent This is Money savings tables of 2.1 per cent. 

 Prize boost: Millions of pounds more in Premium Bonds prizes will be up for grabs from next month.

From next month, the monthly odds of winning for every £1 in Premium Bonds will improve from 24,500 to one to 24,000 to one, adding an expected £76million to the prize fund for October.

This will swell from nearly £139million in September, to £218million in the October draw. 

The changes will see the number of £5,000, £10,000, £25,000, £50,000 and £100,000 prizes almost double. 

Notably, there will be 18 £100,000 prizes from 10 in September, and 35 £50,000 prizes, up from 20.  

There will also be 19 times’ as many £50 and £100 prizes paid out from October, while there will be 1.3million fewer £25 prizes.

NS&I previously increased the prize fund rate on Premium Bonds from 1 per cent to 1.4 per cent in June. The odds at this time changed from 34,500 to 1 to 24,500 to 1.

Ian Ackerley, chief executive of NS&I said: ‘With over 22million holders, Premium Bonds are the nation’s favourite savings product and are more popular than ever. 

‘It’s great to be able to increase the prize pot and give our customers more chances each month to win tax-free prizes.

‘This is the second increase to the Premium Bonds prize fund rate that we have made in less than six months. 

‘These changes have helped us ensure that Premium Bonds remain attractive, while also ensuring that we continue to balance the interests of savers, taxpayers and the broader financial services sector.’